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the lean supply chain process at toyota Motor Corporation
follow the practice of having only two to four supplier
partner per component.what is the effect of this on toyota
motor corporation ?
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Answer Posted / mamta
Advantage:
1. Decrease Administration Costs/Ease of Tracking
2. Better Negotiation due to bulk purchases
3. Trust Based Relationship/Partnership for New Product Development
4. Better Quality Assurance
Disadvantages:
1. Risk of Vertical Integration by Supplier
2. Increased Dependency
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The lean supply chain process at toyota Motor Corporation follows the practice of having only two to four supplier partner per component .what is the effect of this on Toyota Motor Corporation ?
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